Nashville Refinance Rates,
Another exciting week for refinancing. Refinance applications were up 41.5% last week above the previous week, and refinancing now has a 78.5% market share in the mortgage industry. Mortgage rates continue to fall drastically since the Fed’s massive undertaking in mortgage-backed securities and Treasury bonds. Thirty year fixed rates have plummeted to 4.63% which is a 19 year record low dating all the way back to the beginning of the survey.
Where will they go from here? That seems to be the multi billion dollar question. Many believe that we will see an even 4% in our near future, but they are not going to pay you the difference on you note if it does not. It is always important to remember when dealing with unknowns to establish what you do know. What is your current interest rate? What is the current interest rate available on a refinance? How long do you plan on staying in your current home? If any of these questions are an unknown, refinancing step #1 should be answering them.
A good rule of thumb is the 2% and 3 year rule. If you are able to qualify for an interest rate 2% lower than your current rate and plan on being in your home for another 3 years, then by all means refinance. There is wiggle room on either side of this equation. If you have a current rate of 7% and can get a loan at 4.6% but only plan to live in your home another 2 to 2 and a half years then it still seems reasonable. the same works for a 1.5% cut in interest rate, but a longer amount of time in that loan. Refinancing may seem like a fad, but it is such a popular money saver because of the potential savings currently available.
My advice is to use common sense, the 2%, and 3 year rule to do your mortgage planning. Leave your emotions and/or fear out of the equation. If you have done the math and planning on the front end all the unknowns do not matter. Talk to a trusted lender and let the numbers do the math for you. It is truly an exciting time to be a homeowner. The key is to see opportunities for what they are, have a formula in place, and not to worry about what you can not control. I hope this answers some refinancing questions and if you have any more feel free to ask via the contact us tab.
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